Lahey Clinic Hospital, a nonprofit hospital, and medical center, based in Burlington, Massachusetts, recently settled allegations of systemic pay discrimination against female workers that were housekeepers (primarily Haitians). The OFCCP investigation that covered 2010 to 2012 and was settled in February of 2015 determined that 38 female workers were making on average 70 cents less an hour than their male counterparts. The $190K settlement, which includes back-pay, interest and salary adjustments, will entitle the 38 female workers to an average of $5,000 each.
This is not the first time that Lahey Clinic Hospital has found itself in the crosshairs of OFCCP. In 2009, Leahey paid $136,000 to settle a systemic hiring case. The affected class consisted 18 Asian Americans and Hispanics that were rejected for secretarial positions.
What could Lahey Clinic Hospital have done differently?
In both cases, Lahey failed to conduct the necessary compensation and impact ratio analysis that would have uncovered potential issues well before being selected for an audit by OFCCP.
Should your company need assistance in conducting these detailed analyses or any other affirmative action needs, please contact us for a quote.